Canara Bank, based in Bengaluru, is making a move to secure funds that the Karnataka Government plans to withdraw from State Bank of India (SBI) and Punjab National Bank (PNB). This decision comes after issues with large term deposits at these two banks.
Canara Bank’s Managing Director and CEO, K Satyanarayana Raju, said they’ve created a strategy and assigned a team of top officials to quickly tap into this opportunity. The Karnataka Government has given a deadline of September 20 for all its departments, universities, and other government-run organizations to withdraw their deposits from SBI and PNB and close their accounts.
It’s estimated that about ₹6,000 crore is currently parked at SBI, while the amount at PNB is still unclear. The government wants to send a strong message to the two banks due to these deposit issues.
Canara Bank, which has a long relationship with the Karnataka Government, sees this as a chance to grow its business. The bank has been in close contact with the government and has been involved in various social responsibility initiatives in the state, like the Dr. Ambedkar Vidya Jyothi Scholarship program.
While Canara Bank is eager to secure these funds, SBI is trying to convince the government to reconsider its decision. SBI has stated that it is in ongoing talks with the Karnataka Government to resolve the issue amicably.
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